Roth IRA Explained: 2026 Limits, Income Phase-outs and Withdrawal Rules
You pay tax now so that decades of growth come out untaxed later. For younger savers that trade is usually favourable.
At a glance
Figures checked 1 Sep 2026
What to take away
- The 2026 IRA contribution limit is $7,500, plus $1,100 if you are 50 or older.
- Roth contributions phase out between $153,000 and $168,000 for single filers and $242,000 and $252,000 for married filing jointly.
- You can withdraw your own contributions at any time without tax or penalty; earnings are different.
- Qualified earnings withdrawals need the account to be five years old and you to be 59½.
A Roth IRA is funded with money you have already paid tax on. Growth is untaxed, and qualified withdrawals in retirement are untaxed. There are no required minimum distributions during the original owner’s lifetime, which makes it the most flexible retirement account in the US system.
Who can contribute in 2026
| Filing status | Phase-out range |
|---|---|
| Single or head of household | $153,000 – $168,000 |
| Married filing jointly | $242,000 – $252,000 |
| Married filing separately | $0 – $10,000 |
Inside the range your maximum contribution reduces proportionally. Above it you cannot contribute directly, though a backdoor Roth may be available.
The withdrawal rules, in order
Withdrawals come out in a set order: contributions first, then conversions, then earnings. Because contributions were already taxed, they can come out at any age without tax or penalty. That makes a Roth IRA a reasonable backstop behind an emergency fund — though using it means permanently losing that contribution year’s space.
Earnings are the constrained part. To withdraw them tax-free you generally need the account to have existed for five years and to be at least 59½. Exceptions exist for a first home purchase up to $10,000, disability and certain other cases.
The five-year clock starts on 1 January of the tax year of your first contribution. Opening one with a small amount early simply to start the clock is a legitimate and cheap piece of planning.
Contribution deadline
You have until the federal tax filing deadline of the following April to make a contribution for the prior tax year, which is a useful second chance if the year got away from you.
Common questions
Yes. They have separate limits. A common order is: contribute enough to the 401(k) to get the full match, then fund the Roth IRA, then return to the 401(k).
Recharacterise or withdraw the excess plus attributable earnings before the filing deadline to avoid the 6% annual excise tax.
Yes, you need taxable compensation at least equal to your contribution. A spousal IRA allows a working spouse to fund an account for a non-working one.